Analysis and Findings from Mapping the Australian Social and Affordable Housing Network - Queensland and Western Australia
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Analysis and Findings from Mapping the Australian Social and Affordable Housing Network - Queensland and Western Australia See also: • Queensland Social and Affordable Housing Network Maps • Western Australia Social and Affordable Housing Network Maps Judy Kraatz Nirodha Jayawardena P1.61 Mapping the Social and Affordable Housing Network February 2020
SBEnrc P1.61 Mapping the Social and Affordable Housing Network Acknowledgements Project Steering Group Project Leader and Lead Researcher: Judy Kraatz Griffith University Researchers: Nirodha Jayawardena Curtin University Rachel Ong Curtin University Nicolas van der Nest Curtin University Core Members: Richard Spradbury Now Living BGC Residential Linda Parmenter Queensland Department of Housing and Public Works (QDHPW) Jeremy Hill QDHPW Sarah Mewett Western Australia Department of Communities (WA Communities) Veronica Pannell WA Communities Affiliates: Lyn Brun Access Housing Wendy Hayhurst Community Housing Industry Association Sonya Keep Common Ground Queensland Lindsay O'Sullivan Keystart Home Loans Mike Myers National Affordable Housing Consortium (NAHC) Luke Rowlinson Rowlinson Architects Pty Ltd https://cpfcorp.com/ Alex Dordevic Housing Vic and National Disability Insurance Scheme Reform Group Additional stakeholders who participated in mapping workshops in Brisbane and Perth to develop inputs included: Michelle Brown QDHPW - Director Social and Affordable Housing Programs Emma Greenhalgh Q Shelter - Director Policy and Sector Capacity Venessa Swinburn Community Services Industry Alliance - Project Officer Ashley Rouse NAHC - Quality and Contract Management Coordinator Sustainable Built Environment National Research Centre (SBEnrc) Page 2 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network TABLE OF CONTENTS 1 EXECUTIVE SUMMARY .................................................................................................................. 5 2 INTRODUCTION............................................................................................................................. 7 2.1 Research approach .......................................................................................................... 8 2.2 Why network mapping .................................................................................................. 12 3 NETWORK ELEMENTS - BACKGROUND....................................................................................... 15 3.1 Element 1 – Policy drivers and players .......................................................................... 15 3.2 Element 2 – Funding ...................................................................................................... 18 3.3 Element 3 – Financing (private, institutional and individual) ........................................ 19 3.4 Element 4 – Procurement and delivery ......................................................................... 20 3.5 Element 5 – Metrics, indicators and data ...................................................................... 21 3.6 Element 6 – Labour market dynamics and housing....................................................... 22 3.7 Element 7 – Changing demographics ............................................................................ 23 3.8 Element 8 – Housing typologies .................................................................................... 24 3.9 Element 9 – Socio-environmental systems.................................................................... 27 3.10 Element 10 – Integrated, shared and disruptive technologies...................................... 27 3.11 Element 11 – Housing asset management .................................................................... 29 3.12 Element 12 – Production supply chain .......................................................................... 29 3.13 Element 13 – Knowledge, skills and capacity building .................................................. 31 4 INTERNATIONAL COMPARISONS ................................................................................................ 33 4.1 Canada ........................................................................................................................... 33 4.2 United Kingdom ............................................................................................................. 35 4.3 Singapore ....................................................................................................................... 37 5 RESEARCH FINDINGS................................................................................................................... 39 5.1 Concluding remarks ....................................................................................................... 44 6 APPENDIX A – NETWORK MAPPING EXAMPLES ......................................................................... 46 6.1 Canada’s housing system ............................................................................................... 46 6.2 Australian building and construction product system map........................................... 47 6.3 Hong Kong construction industry stakeholder challenges ............................................ 48 6.4 Energy efficiency in Australian housing - Social Network Analysis................................ 49 6.5 An approach to collaboration in industrialised buildings - Actor Network Theory ....... 50 Sustainable Built Environment National Research Centre (SBEnrc) Page 3 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network 7 APPENDIX B – ADDITIONAL ELEMENT-BASED INFORMATION ................................................... 52 7.1 Element 2 - Funding ....................................................................................................... 52 7.2 Element 3 - Financing..................................................................................................... 53 7.3 Elements 2 and 3 - Funding and Financing in Canada ................................................... 54 7.4 Element 9 - Socio-economic systems ............................................................................ 55 8 References .................................................................................................................................. 56 Sustainable Built Environment National Research Centre (SBEnrc) Page 4 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network 1 EXECUTIVE SUMMARY This Sustainable Built Environment National Research Centre (SBEnrc) project, Mapping the Social and Affordable Housing Network aims to contribute to improvement in the productivity, effectiveness and efficiency of this network in Australia. Through providing a high level, graphical representation across 13 elements these maps, and associated findings cast light on current complexity, challenges and opportunities. The maps, findings and supporting materials have been brought together to facilitate a strategic yet pragmatic understanding of of this network. This has been done to help organisations better leverage outcomes for those in need of social and/or more affordable housing. These maps are a snapshot in time, at July 2019. As such they are intended to provide a base-line overview of this network, to inform current understanding, and future analysis and decision-making. They cannot be comprehensive due to the expansive nature of the network (and limited project resources), but aim to provide a foundation for decision-making. For example, they could help guide a living process to assist organisations identify and engage with partners and stakeholders, to better address the changing nature of the housing need. The intent has been to identify all participants for the three tiers of government and for peak bodies/industry associations, whilst providing examples only for the remaining groups of participants involved in the network. Network maps have been developed for two focal participants, the WA Department of Communities, and the Queensland Department of Housing and Public Works. Thirteen elements have been identified and used to provide clarity for both the graphical representations and also to help network participants breakdown the complexity to aid decision- making. 1. Policy drivers and players 8. Housing typologies 2. Funding 9. Socio-environmental systems 3. Financing (private, institutional and 10. Integrated, shared and disruptive individual) technologies 4. Procurement and delivery 11. Housing asset management 5. Metrics, indicators and data 12. Production supply chain 6. Labour market dynamics and housing 13. Knowledge, skills and capacity 7. Changing demographics building The consequent analysis and findings have then been based on: (i) knowledge gathered in the previous SBEnrc social and affordable housing program of research; (ii) desk top research of the network; (iii) a limited review of relevant network mapping literature; (iv) input of expert stakeholders in the workshops held from May-July 2019; (v) feedback on draft maps from research partners; (vi) a limited review of literature relevant to system improvement; (vii) a limited review of housing system literature in Canada, Singapore and the United Kingdom (UK); and (viii) insights and reflections from the research team throughout the process of developing these maps. The findings and recommendations included in this report are not specific to the two state government housing agencies as the focal participants, but address issues across the whole of the housing network, as identified in the network maps. As such they will be relavent at various levels of government, and/or to various participants across the network. Whilst some findings may be specific to certain groups of organisations, it is recommended that all network participants engage with these findings to help build understanding of the complexity and inter-relationships which exist across the Australian social and affordable housing network. This research offers a unique and important overview of the Australian social and affordable housing network as a whole, rather than one of siloed parts. This provides the opportunity for people and organisations to come together with a united understanding and language, to add value both within and across the network. Sustainable Built Environment National Research Centre (SBEnrc) Page 5 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network The key findings identified in this research are listed below. Accompanying recommendations are provided in Section 5 Research Findings. Strengths, weaknesses and critical junctions in the network 1) Single issue, stand-alone policy development around housing is not a tenable or effective solution to complex problems across the network. 2) Addressing niche client needs is vital in a person centred environment. 3) The need exists to better leverage investment to produce outcomes across multiple elements. 4) There is currently a lack of a national bi-partisan housing strategy to support the most vulnerable and tenants and homeowners generally. Opportunities for system improvement 5) Housing as critical social and economic infrastructure. 6) Recognition of alternative policy and economic levers at a national level, beyond demand and supply. 7) Greater national recognition of housing as part of functional urban, economic and social systems, with associated required policy integration. 8) Providing a home not a house. 9) Improving data accessibility and effectiveness of use across the network. 10) Improve understanding of a complex and fragmented network, across both asset and service delivery. 11) Partnerships and alliances across the network are vital to strengthen the system. 12) Address cross disciplinary complexity in building knowledge, skills development and capacity building. Policy, research and skills development priorities 13) There is a need for national, longitudinal datasets to inform policy development, delivery and to better understand the impact of policy changes. 14) Longevity in policy making needed. 15) Change is slow in this network, yet socio-environmental changes are occurring more rapidly. 16) New ways of working (e.g. co-design) are required in a place-based, person-centred policy environment. Improving network and community understanding 17) There is a need for better clarity and stronger understanding of the complexities of the housing system in Australia. 18) National peaks exist for industry, government and not-for-profit (NFP) organisations but not for the individual in need of housing. 19) Continue to build the evidence base to support continuing government needs-based investment in housing, along with further building the case for private and NFP investment. Housing needs to be considered as social and economic infrastructure in a similar way to hospitals, schools and roads. This requires asset management budgets and rolling programs of work to enable investment planning to me long term demand based on demographic projections. Further research in this area is recommended, to build on these baseline maps. Follow-up interviews with expert stakeholders, network participants and those living in social and affordable housing could enable a further more detailed analysis of the network, to further describe, analyse and quantify relationships and interactions. This document partners with two companion reports - Queensland Social and Affordable Housing Network Maps and Western Australia Social and Affordable Housing Network Maps. Sustainable Built Environment National Research Centre (SBEnrc) Page 6 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network 2 INTRODUCTION Sustainable Built Environment National Research Centre (SBEnrc) research, Mapping the Social and Affordable Housing Network1 aims to improve the productivity, effectiveness and efficiency of the housing system in Australia. This current research builds upon findings of previous SBEnrc research projects: Rethinking Social Housing2, Valuing Social Housing3, and Procuring Social and Affordable Housing4. Through provision of a set of network maps the research aims to provide a strategic yet pragmatic understanding of the complexities and associations in the system which can then inform policy development and delivery. The Rethinking Social Housing project developed a productivity-based conceptual framework, which addressed the role and benefits of having access to safe and secure housing through the lens of productivity, in terms of an array of benefits including tenant, macro-economic, fiscal and non- economic perspectives. These high-level maps which focus on public, community and non-market rental housing, aim to identify, understand and describe the various elements of this complex system. Most people reading this report will have a high level of understanding of the housing system in Australia, and the elements within this system. The network maps developed in this research provide a graphical representation of some of this complexity. Figure 1 is a composite image of four of the thirteen maps developed for Queensland (Qld). Full reports for both Qld and Western Australia (WA) are available at the project website. Figure 1 – Network mapping composite image 1 http://sbenrc.com.au/research-programs/1-61/ 2 http://sbenrc.com.au/research-programs/1-31/ 3 https://sbenrc.com.au/research-programs/1-41/ 4 http://sbenrc.com.au/research-programs/1-54/ Sustainable Built Environment National Research Centre (SBEnrc) Page 7 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network The Australian Institute of Health and Welfare (AIHW) also provide some timely updates on the extent of housing need (2019): 1. ‘288,800 clients were assisted by SHS (specialist homeless services) agencies in 2017–18.’ 2. ‘‘189,400 households (were) awaiting social housing allocation at 30 June 2017.’ 3. ‘812,900 tenants in 396,100 households were living in the main social housing programs across Australia in 2016–17.’ Other points which provide an overarching context for consideration as you read this report include: 1. ‘183,965 Australians are benefiting from the (National Disability Insurance Scheme) NDIS, including: 176,197 people [who] have received individualised plans’ (National Disability Insurance Agency 2018). 2. It is only recently (i.e. one generation) that Australians have built significant wealth from housing (Herbert, McCue et al. 2013). 3. Increase in disposable income for consumer goods to fill houses. The average size of Australian houses are some of the largest in the world (Commsec 2017). 4. There has been a trend towards the financialisaton and commodification of housing globally with Sydney being the focus of international investment which has contributed to the housing affordability issue nationally. (Farha 2017). 5. This has been occurring alongside the role of housing provision being increasingly relinquished by state and territory governments to the NFP and private sector, and partnerships thereof (Dalton 2009). The shift has been occurring for many decades (Table 1) and is much more complex than a supply and demand equation with links to the labour market, income distribution and demographic changes in our population. This shift from public sector provision is one that is entwined with ‘the broader functioning of urban economies and social cohesion’, and the need to develop housing policy on a national scale and in a global context (Dalton 2009). Table 1 - Public housing completions as a percentage of dwelling completions Percentage 1945/46 23 1955/56 20 196465 14 1966 8* * Of total stock of occupied dwellings Source: Dalton 2009 2.1 Research approach Critical to this research is the focus on the person and/or the household. This has been central to the SBEnrc social and affordable housing program of research since 2014, when the nine impact domains were developed, which demonstrate the value and impact of having safe and affordable housing on all aspects of a person’s life. These impact domains are community and culture, economy, education, employment, environment, health and wellbeing, housing, social engagement and urban amenity The network maps have then been developed in the context of the lead government housing agency in both Queensland and Western Australia (as the focal participant). Both these agencies are core partners in SBEnrc. This has been done with a focus on combined asset and service provision, in line with housing strategy in both states. This also acknowledges that greater benefit from investment is gained where broader issues of individual and community wellbeing are also considered, as demonstrated in the previous SBEnrc research project Valuing Social Housing. Sustainable Built Environment National Research Centre (SBEnrc) Page 8 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network Thirteen elements of the social and affordable housing network, listed below, have been identified to improve map clarity and ensure complex information could be communicated as effectively as possible. Development of these elements was informed by previous SBEnrc research, including the 9 impact domains developed in the Rethinking Social Housing research and then in conjunction with industry experts in project-based Working Group discussions from March to August 2018, and Project Steering Group meeting input in October 2018. 1. Policy drivers and players 8. Housing typologies 2. Funding 9. Socio-environmental systems (SES) 3. Financing (private, institutional and 10. Integrated, shared and disruptive individual) technologies 4. Procurement and delivery 11. Housing asset management 5. Metrics, indicators and data 12. Production supply chain 6. Labour market dynamics and housing 13. Knowledge, skills and capacity 7. Changing demographics building Further to improving map clarity, network participants were collated in 11 groups (Table 2). The intent has however been to aim to identify all participants for the three tiers of government and for peak bodies/industry associations, while providing examples only for the remaining groups of participants involved in the network (as at July 2019). The intensity of the relationships (i.e. primary, secondary or tertiary) with the focal participant has also been identified on the maps and in the associated reference tables. This has been established through desk-top research, expert panel workshops and research team knowledge. For example, the relationship between the focal participant (i.e. QDHPW) is, for example: 1. Primary - with other government agencies whose policy objectives are intertwined 2. Secondary - with many of the industry organisations who may lobby and inform policy but do not have a direct relationship with the focal participant. 3. Tertiary - with, for example, realestate.com, who provide an important service to home buyers but not with the focal participant. Sustainable Built Environment National Research Centre (SBEnrc) Page 9 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network Table 2 – Group icons and details Commonwealth Government All participants* State government All participants* Local government All participants* Peak body/industry association All participants Advocates Examples only Community housing providers (CHPs) Examples only Not-for-profit (NFP) providers Examples only Research Examples only Industry Examples only Philanthropic Examples only Informal Examples only Figure 2 highlights the relationship among the nine impact domains, the 11 network participant groups and the 13 network elements. Figure 2 – Domains, participants, elements and the person Sustainable Built Environment National Research Centre (SBEnrc) Page 10 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network Two sets of 13 network maps have been developed, one for WA and one for Qld. The 2 focal participants (actors), around which the maps were built are: (i) WA Department of Communities (WA Communities); and (ii) QDHPW. Information for these maps has been compiled in reference tables, and was developed through: (i) research team expertise; (ii) desk top research; (iii) expert panel workshops in both Brisbane and Perth between May and July 2019; and (iv) feedback from partners on the draft maps. It is important to note that such a view of the social and affordable housing system in both WA and Qld has not been undertaken to date. These maps are thus provided as a base from which to build a more detailed understanding of how this complex system functions. Further expert panel workshops and interviews would be required to enable greater understanding which could then inform the development of data rich maps using online network mapping software. The maps cannot be comprehensive due to the expansive nature of the network, but they are intended to provide a starting point for understanding. As such they could become part of a living process for organisations to engage with partners and the broader sector to better understand the changing nature of the network over time, given available funding and resources. This subsequent analysis, in line with the project objectives identified in the SBEnrc P1.61 Project Schedule and Project Steering Group discussions, aims to identify: (i) identify strengths, weaknesses and critical junctions in the network; (ii) identify opportunities for system improvement for example, in relation to technical, capability, coordination, cultural or other issues; and (iii) make recommendations for policy, research and skills development in the sector. This analysis has been informed by: 1. Knowledge gathered in the previous SBEnrc social and affordable housing program of research. 2. Desk top research of the network. 3. A limited review of relevant network mapping literature, based on available resources. 4. Input of expert stakeholders in the workshops held from May to July 2019. 5. Feedback on draft maps from research partners. Sustainable Built Environment National Research Centre (SBEnrc) Page 11 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network 6. A limited review of literature relevant to system improvement. 7. A limited review of housing system literature in Canada, Singapore and the UK. 8. Insights and reflections from the research team throughout the process of developing these maps. 2.1.1 Clarifications The following points of clarification are provided: 1. For social housing, QDHPW has a key policy role with on-the-ground delivery through the Department of State Development, Manufacturing Infrastructure and Planning (DSDMIP) and local government arrangements along with national settings such as the National Affordable Housing Agreement (NAHA). 2. For affordable housing, QDHPW plays more of a catalyst role, providing policy and some financial input. The key drivers at a state level are DSDMIP frameworks and national policy settings such as the National Housing Finance and Investment Corporation (NHIFC) and tax incentives. 3. Whether an organisation has been included as a peak body, industry association or an advocacy group has been based on their website details. The distinction is made to assist with the clarity of the maps and is sometimes grey. This does not broadly impact findings. 2.2 Why network mapping The use of visualisation techniques to help explain complex networks is widely supported as it provides researchers and participants to see a graphical representation of the network being investigated. Hogan et al. (2007) note that illustrating links between participants provides more dependable results, engagement and understanding. To help establish a process for this mapping, a review of literature focussed around network mapping was undertaken in late 2018. Limited literature was found which directly addresses mapping the social and affordable housing network. Considerable literature was found however in related and allied sectors. Based on this review, a hybrid Social Network Mapping/Actor Network Theory (SNA/ANT) approach has been used for this research. This approach enables us to identify the participants within this network in Australia, with an emphasis on the human and organisational actors. It enables a multilevel analysis of interactions and influences among multiple stakeholders within the network, to deliver on the research objectives previously stated. The following steps were thus undertaken: 1. Identify the focal actors i.e. WA Communities, and QDHPW. 2. Confirm the 13 elements for considering the network to facilitate mapping clarity. 3. Identify participants (nodes) and links (e.g. flows of knowledge). 4. Identify activities, connections and interactions among participants (especially with the individual/household). 5. Consolidate information into reference tables. 6. Develop draft maps. 7. Conduct expert panel workshops with key participants, and then draft map content with regards to coverage of participants and map clarity. 8. Finalise the network maps. 9. Analyse the maps to identify synergies, gaps and clashes in line with research objectives in terms of strengths, weaknesses and critical junctions in the network, opportunities for system improvement and policy, research and skills development priorities. Mapping these networks can shed light on synergies that contribute to improving processes and outcomes, and to the gaps and clashes which impact on delivering effective outcomes. To effectively implement change an understanding of the complexity of the system, both formal and informal, is Sustainable Built Environment National Research Centre (SBEnrc) Page 12 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network required. Ultimately, the effectiveness of the network affects short-term outcomes, and medium and long-term impacts across both the social and financial realms. Benefits of mapping this system, and its many participants, includes: 1. Improved communications and sharing - a visual map can reveal system dynamics and show: key actors; boundaries of the supply chain; interrelationships and functional roles, flow of services, knowledge and information along the chain; linkage points; and gaps or blockages among participants. 2. Improved analysis through - for example, providing a starting point for new participants to the network, or for existing members to identify issues, challenges and areas for improvement. 3. Promotion of higher level collaboration - for example, in helping to overcome barriers to entry, bottlenecks, value sharing and supply-related constraints. These current research outcomes (i.e. network maps and reference tables) also provide the opportunity for further, more analytical network analysis. On-line network mapping tools are very effective in imagining, and perhaps re-imagining, a process as a complex system containing various stakeholders and relationships. The purpose of such being to analyse stakeholder associated schedule risks and their cause-and-effect relationships. This methodology has been applied in various research areas, including a green building project (Yang and Zou 2014), waste management (Caniato, Vaccari et al. 2014), the construction industry (Zou 2006), information science (Otte and Rousseau 2002), and social science (Borgatti, Mehra et al. 2009). Examples of how network/system mapping approaches and tools have assisted with improving network outcomes and impacts in allied housing-related sectors are listed below with detail provided in Section 6, Appendix A: 1. Australian building and construction industry – product system map. 2. Hong Kong construction industry - risk network and status centrality map. 3. Canadian housing system. 4. Energy efficiency in Australian housing – SNA. 5. Collaboration for industrialised building settings within the Australian housing supply chain – ANT. Table 3 provides a summary of the benefits of network mapping in a housing delivery context, based on the examples provided in Appendix A. Table 3 – Summary of benefits of network mapping in the housing delivery context Housing Benefits Delivery Segment Planning • Better information flow about customer requirements. • Improve flow of knowledge and resources to make all firms in the delivery supply chain more productive. • Greater coordination of design and assembly. Construction • Identifying and managing risks. • Better access to resources. • Provide a broader conceptual view of the building activity • Utilising resources. • Strengthening the weakest link to address bottlenecks in the chain. • Improving specific links between firms to address issues at identified bottlenecks. Marketing and • Creating new or alternative links in the chain, such as promoting local firms sales to enter global supply chains. Sustainable Built Environment National Research Centre (SBEnrc) Page 13 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network • Linking to new, additional lead firms. Occupancy and • Uncover sources of conflicts as well as potentials for cooperation management • Facilitate knowledge exchange and learning processes • Develop visions and strategies to achieve common goals. Sustainable Built Environment National Research Centre (SBEnrc) Page 14 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network 3 NETWORK ELEMENTS - BACKGROUND As discussed above, the element-based approach to the maps is intended to build understanding around the breadth of discussions which need to occur. This section: (i) highlights some of the key issues identified in the course of this research; and (ii) provides some additional background for each of the 13 elements. This then informs the findings and recommendation provided in Section 5 of this report. Issues highlighted include those which emerged during map development and refinement (including expert panel comments and discussions), and desk top research throughout the course of this project. 3.1 Element 1 – Policy drivers and players The following key issues are highlighted for this element: 1. The network maps reveal the complexity of the system, and can potentially help policy makers better understand the breadth of change which needs to be addressed, beyond supply and demand, and economic value. The complexity also demonstrates the challenges which will be faced in building consensus for a national housing strategy. 2. There is a high degree of permeability between state and civil society policy-making as evidenced by the number of non-state/civil society players represented in the network maps. 3. Policy diffusion without national leadership, a national strategy, and a national body specifically representing those in housing crisis, tenants, and homeowners, is impeding the way in which a strong bi-partisan national strategic focus can be developed. 4. Co-design among the three tiers of government, CHPs and the private sector, and among asset providers, service providers and advocates are considered an important way of providing person centred, place-based solutions. The 2019 ANZ Core Logic Housing Affordability Report highlights several issues around supply and demand and the economy, including housing affordability, intergenerational inequity, interest rates, access to credit and persistently low income growth remains as ongoing challenges for policy makers (ANZ and Corelogic 2019). Broader issues, as highlighted by Dalton (2009), also need to be considered in the current housing policy environment. These include: 1. There is permeability between state and civil society policy-making, as evidenced by the number of non-state/civil society players represented in the network maps including the many peak bodies and industry associations. 2. Policy diffusion, without national leadership, and without a national association body specifically representing those in housing crisis, tenants, and homeowners, further marginalises broad reaching housing policy development beyond supply and demand scenarios. 3. The rise in popularity of non-for-profit housing and co-operatives ‘because costs could be contained by devolving responsibility and encouraging volunteer labour and sweat equity’. 4. Issues of housing and labour market income distribution, demographic changes, urban economies, and social cohesion need consideration. 5. The limited capacity of state agencies to make an impact ‘in terms of broader economic policy making in a national and global context’. Many individuals and organisations across Australia have been calling for a national housing strategy or plan (Community Housing Industry Association (CHIA) 2018, National Shelter 2018). The complexity of the network maps demonstrates the challenges which will be faced in building consensus for such a national strategy. Whilst there is now a Commonwealth Minister and Assistant Minister for Housing, responsibilities for ensuring an effective housing system remains spread across many departments (including Social Services and Human Services and those representing Indigenous Australians). In the Sustainable Built Environment National Research Centre (SBEnrc) Page 15 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network shadow ministry there is again several ministries with responsibilities which impact on housing. This policy diffusion is impeding the way in which a strong bi-partisan national strategic focus can be developed (Dalton 2009; Lawson, Dodson et al. 2019) To compound this, the states and territories have a primary role in the delivery of public housing, and setting the environment for community housing, and affordable rental and private housing, with local government having a primary role in zoning and planning mechanisms (Table 4). A bi-partisan approach to the development of housing policy at a national level, and in many states, has not existed in this country for many decades, with policy changes often linked to political cycles. Much of the impact of housing policy cannot be accounted for in the short term, with impacts not becoming evident for several years, or even inter- generationally. This makes it difficult to track and understand the impact of policy decisions. Table 4 – Snapshot of housing-related responsibilities by tier of Government Tier of Current primary responsibilities and Additional recommended responsibilities and Government powers* powers Common- Tax arrangements Policy leadership – long term housing plan wealth Building codes and regulation (Australian Leadership aboriginal housing Leadership Building Codes Board) disability housing Funding – e.g. National Housing Finance Expanded/updated codes and regulations to and Investment Corporation, match changing environment Commonwealth Rent Assistance Aboriginal housing funding Social security payments Living wage/rent National data repository to enable social value bank National CHP regulation State Taxes and duties Value capture and inclusionary zoning on all Planning and development government land Public housing supply Rental security regulations CHP regulation Private rental regulation Indigenous community housing Social support infrastructure Transport infrastructure Local Zoning Planning mechanisms to protect affordable Planning mechanisms housing Urban and community infrastructure Encourage diversity of stock Partner with CHPs land supply * This is not definitive as the situation varies based on partnerships and other arrangements Further key issues identified in the course of this and previous SBEnrc social and affordable housing research include: 1. The need to prioritise funding across the housing network, due to the contestatory and competitive funding environment which exists between the Commonwealth, and State and Territories, is disadvantaging the most vulnerable in our society, and impacting on the functioning of the broader housing system. 2. Embedding co-design – among (i) the three tiers of government, CHPs and the private sector, and (ii) asset providers, service providers and advocates is needed to support a person centred, place-based approach to housing policy making and provision. 3. Evidence-based policy development and evaluation is needed to be able to promote investment and report return on investment, to both commonwealth and state Treasuries and private/institutional investors. 4. Recognition of the medium to long term (often inter-generational) impact of the lack of secure housing is needed. Sustainable Built Environment National Research Centre (SBEnrc) Page 16 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network 5. There is a need for a non-commodified housing system with housing classed as both social and economic infrastructure (Infrastructure Australia 2019, Queensland Department of State Development, Manufacturing, Infrastructure and Planning (QDSDMIP 2019). 6. Clarity in the policy related to housing is especially important for the most vulnerable community members, including people with disability and Indigenous Australians. The Queensland Council of Social Services (QCOSS) housing policy theory of change is provided as an example of a structured process for addressing these complex and currently intractable problems (Figure 3). Figure 3 – QCOSS Housing policy Theory of Change Source: Queensland Council of Social Service 2018a Recommend further reading relevant to this element includes: 1. Commonwealth of Australia (2017). Remote Housing Review: A review of the National Partnership Agreement on Remote Indigenous Housing and the Remote Housing Strategy (2008-2018). Commonwealth of Australia, Canberra. 2. Habibis, D., R. Phillips and P. Phibbs (2019). Housing policy in remote Indigenous communities: how politics obstructs good policy, Housing Studies, 34:2. 3. Power, E. and K. Mee (2019) "Is this a housing system that cares? That’s the question for Australians and their new government." The Conversation. 4. Westbury, N. and M. C. Dillon (2019). Overcoming Indigenous exclusion: very hard, plenty humbug. Centre for Aboriginal Economic Policy Research, Australian National University: Canberra. Sustainable Built Environment National Research Centre (SBEnrc) Page 17 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network 3.2 Element 2 – Funding The following key issues are highlighted for this element: 1. The taxation treatment of housing in Australia is an issue highlighted by several network participants. 2. Family and kinship support are important in this element. It is well understood that government alone cannot cope with the increasing demand for social housing. Hence, it is imperative we look at innovative ways to fund this need with the collaboration of private institutional investors. Governments in Australia can take a proactive role in addressing issues which fall into their jurisdiction regarding long-term policy setting, transparency and risk. Different social and affordable housing projects also require different funding mechanisms, that is, some instruments work best for individual projects, while others perform better on a city, regional or national level. Several organisations address the tax treatment of housing in Australia and its impact of the housing system and affordability: 1. Reforms of capital gains tax and negative gearing provide benefits to people who already own houses leaving the low/middle income groups in the expensive rental market (National Shelter 2018). 2. CHPs supplied 3.3 percent of Australia’s rental housing (CHIA 2018). Thus, eliminating bias in the taxation system towards social and affordable housing development is an important way to attract more CHPs to the sector. Moreover, CHIA NSW note that ‘channelling social and affordable housing investment through not-for-profit housing organisations maximises the impact of the taxpayer’s investment because CHPs forego the usual developer margin and use taxation concessions to generate 25 to 30 percent additional supply’ (CHIA NSW 2018). 3. The 2018 Grattan Institute report on housing affordability discusses tax settings including impacts on how they encourage people to invest in housing, and discourage people from downsizing, increasing demand for well-located houses (Daley and Coates 2018). 4. The 2018 Housing Policy Review report from QCOSS discussed this in the context of housing being commodified rather than viewed as a human right (QCOSS 2018). 5. The 2018 Australian Housing and Urban Research Institute (AHURI) report Pathways to Housing Tax Reform, proposed a staged set of housing tax reform around: (i) income tax treatment of housing assets; (ii) asset portfolio decisions of Australian households; and (iii) pathways to state housing and land tax reform (Eccleston, Verdouw et al. 2018). A further issue raised throughout this program of research is the need to provide the person or household with a stable home that does not change depending on the type of assistance they are receiving at a given point in time (See Section 7.1 for a snapshot of Australian Government funding schemes). Recommend further reading relevant to this element includes: 1. Jayawardana, N. I. and J. Kraatz (2018). Funding and Financing Approaches. SBEnrc: Brisbane, Australia. 2. Kraatz, J. and N. I. Jayawardana (2018). Procuring social and affordable housing. SBEnrc: Brisbane, Australia. Sustainable Built Environment National Research Centre (SBEnrc) Page 18 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network 3.3 Element 3 – Financing (private, institutional and individual) The following key issues are highlighted for this element: 1. Risk is considered to be a major component in restricting large-scale investment. 2. Reduced economies of scale for providers, a perception of increased credit risk, below market returns on rental yields are all making investment in housing less attractive. 3. Long term measures, consistent policy direction, stable regulatory environments and reliable cash flows are all important to investors. 4. Several innovative models for attracting funding are available. 5. Rental system reform is needed to address trend of people staying in the rental system for longer periods. 6. Social housing being considered as an infrastructure class an important step to considering housing as vital economic and social infrastructure. There has been debate over the past few years as to how substantial volumes of private finance could be leveraged into this sector. The most widely suggested approaches include: the use of retail investment vehicles; tax relief targeting CHPs; rent-to-buy models; and shared equity models. Risk is considered to be a major component in restricting large-scale investment and has a significant impact on the various investment hurdle rates, however under the right conditions, risk is an imputed cost/rate which may never be realised. Therefore, if these risks were removed the required investment rate would be substantially reduced, and potentially the costs associated with various housing related activities and their externalities would also be reduced. Social Ventures Australia (2017) highlight several challenges in attracting private capital: (i) reduced economies of scale for providers; (ii) a perception of increased credit risk from institutional investors limiting access by CHPs to low-cost capital over longer terms; (iii) rental yields which are significantly below market returns making it a less attractive investment; (iv) the need for stable regulatory environments and reliable cash flows; and (v) short term measures and inconsistent policy direction which creates uncertainty. Providing only demand side subsidies is not sufficient to tackle the widening gap between the demand and supply of funding and finance. This could be addressed to some extent through: a fairer and more secure renting system which does not assume renting is a pathway to home-ownership (National Shelter 2018); commonwealth government participation at all stages in building social and affordable housing, including identifying shortfalls in the existing financing mechanisms; and better accounting for future demographic and technology changes. This requires attention to all 13 elements discussed in this report when making and evaluating strategy, policy and budgets. Of note also is that social housing is now considered as an asset class by the Queensland Government (QDSDMIP 2019b) and Infrastructure Australia (Infrastructure Australia 2019). This is an important step forward for housing to be considered in the broader context of fulfilling value to the person/household and society. See Section 7.2 and 7.3 for addition detail of some Australian financing schemes and approaches. Recommend further reading relevant to this element includes: 1) Jayawardana, N. I. and J. Kraatz (2018). Funding and Financing Approaches. SBEnrc: Brisbane, Australia. 2) Kraatz, J. and N. I. Jayawardana (2018). Procuring social and affordable housing. SBEnrc: Brisbane, Australia. Sustainable Built Environment National Research Centre (SBEnrc) Page 19 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network 3.4 Element 4 – Procurement and delivery The following key issues are highlighted for this element: 1. The shift in delivery to that of person-centred and place-based delivery approaches continues, and remains as a significant shift in procurement in recent times. 2. Addressing unconscious bias in procurement systems is critical for person centred and place based solutions. A place-based approach is defined as ‘collaborative, long-term approaches to build thriving communities delivered in a defined geographic location’ (Dart 2018, p.1). This approach is now being used by state housing agencies to respond to complex and challenging social issues. The Place-based Evaluation Framework, developed by Dart, includes ‘instruction for multi-site PBAs (place-based delivery approaches), evaluation scoping, collective impact, cultural capability, theory of change, key evaluation questions, principles, indicators, measurement, ethical conduct, resourcing, reporting, and a theoretical overview of complexity aware evaluation approaches’. The conceptual cube (Figure 4) provides a guide to the interplay of elements when considering place-based solutions. Figure 4 – Conceptual cube - the interplay of elements in place-based solutions Source: Dart 2018, p.2. In a person-centred delivery environment, cultural proficiency within and across an organisation is important (Figure 5), requiring ‘an organisational culture that actively challenges and addresses unconscious bias towards people from culturally and linguistically diverse (CALD) backgrounds with disability and their communities’ (Katrivesis and Robertson 2018, p.1) (Figure 5 – Key elements of Sustainable Built Environment National Research Centre (SBEnrc) Page 20 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network cultural proficiency – good practice model Figure 5). Such an approach is needed to ensure a diverse and inclusive approach to procuring social and affordable housing, throughout the network, and not just limited to those organisations involved specifically in the delivery of housing to specific cohorts. Figure 5 – Key elements of cultural proficiency – good practice model Source: Katrivesis and Robertson 2018, p.1. In a 2012 working paper Martel, Harley et al. 2012 review procurement options used in remote Indigenous communities in both the Northern Territory (NT) and WA through three case studies. The paper proposed the following criteria as a guide to the selection of appropriate procurement methods: (i) the apportionment of risk and responsibilities; (ii) clarity and tangibility i.e. flexibility and ease of variation in dealing with uncertainty; (iii) the importance of timing and timelines; (iv) ensuring cost competitiveness and enabling cost certainty; (v) the ability to incorporate ‘non-building or non- housing’ outcomes; (vi) ensuring participation in the process and managing expectations; and (vii) addressing design and building integration, buildability and quality issues. Recommend further reading relevant to this element includes: 1) Kraatz, J. and N. I. Jayawardana (2018). Procuring social and affordable housing. SBEnrc: Brisbane, Australia. 3.5 Element 5 – Metrics, indicators and data The following key issue is highlighted for this element: 1. Using data to help determine/demonstrate the long-term social and economic benefits of housing and housing policy is crucial. There are many valuable sources for relevant data and its interpretation (including tools) in Australia. Some key examples include: Sustainable Built Environment National Research Centre (SBEnrc) Page 21 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network 1. Australian Institute of Health and Welfare (AIHW), Housing Assistance in Australia 2018 - annual document (Australian Institute of Health and Welfare 2018) 2. AIHW Housing Data Dashboard - https://www.housingdata.gov.au/ 3. AIHW National Social Housing Survey - https://www.aihw.gov.au/about-our-data/our-data- collections/national-social-housing-survey 4. Australian Bureau of Statistics (ABS) Survey of Disability, Ageing and Carers - https://www.abs.gov.au/ausstats/abs@.nsf/mf/4430.0 5. ABS Housing Occupancy and Costs - https://www.abs.gov.au/ausstats/abs@.nsf/mf/4130.0 6. ABS Socio-Economic Indexes for Areas - https://www.abs.gov.au/websitedbs/censushome.nsf/home/seifa 7. The Household, Income and Labour Dynamics in Australia (HILDA) Survey - an important source of longitudinal data gathered from a household-based panel study - https://melbourneinstitute.unimelb.edu.au/hilda 8. The Australian Social Value Bank is developing an online value calculator tool which uses cost-benefit analysis to help measure social value https://asvb.com.au/asvb-helps-measure- social-impact/calculate-social-value-with-asvb/ Two international examples of how data can be effectively used to address the social and economic benefits of housing include: 1) Wellbeing valuation - key sources internationally include HACT UK - https://www.hact.org.uk/ and the Organisation for Economic Co-operation and Development (OECD) - http://www.oecd.org/statistics/measuring-well-being-and- progress.htm . In the UK, HACT has developed a well-being valuation analysis method which enables community housing associations to measure the impact of their investment in terms of well-being. This method addresses the impact of the broader non-housing benefits of access to safe and secure housing on an average person’s well-being, and places a dollar value on these benefits. 2) A Living Standards Framework has recently been developed by New Zealand Treasury. This enables them to determine ‘the likely effects of their policy choices on New Zealanders’ living standards over time’ through an ‘intergenerational wellbeing approach’ (New Zealand Treasury). Recommend further reading relevant to this element includes: 1) Kraatz, J. and G. Thomson (2017). Valuing Social Housing - Final Research Report and Attachment A. SBEnrc: Brisbane, Australia. 3.6 Element 6 – Labour market dynamics and housing The following key issues are highlighted for this element: 1. There is a need to better understand housing impacts relating to underemployment and casual workers; to building a better understanding lived experience in terms of access to housing; 2. Continuity of ‘home’ is needed as people transition from emergency to social housing to better enable engagement with all aspects of life including employment. 3. A shift in government spending away from tax and benefit incentives that favor homeownership in favor of tenure-neutral, portable and progressive housing allowances. The 2017 Australian Housing and Urban Research Institute (AHURI) report Housing tenure, mobility and labour market behaviour examines issues of geographic mobility, reservation wages5, and job 5 The minimum wage that an unemployed individual finds acceptable (AHURI 2017). Sustainable Built Environment National Research Centre (SBEnrc) Page 22 of 64
SBEnrc P1.61 Mapping the Social and Affordable Housing Network search behaviour. (Whelan and Parkinson 2017). A 2019 World Bank report on housing mobility notes that high-productivity jobs are often concentrated in metropolitan areas. With much of household wealth tied up in immovable assets such as land and housing, this can contribute to wealth inequality and homeowners being ‘anchored’ to a location independent of its prosperity (Inchauste 2019). This report makes the following recommendations to improve labour market dynamics and housing: 1) Create enabling conditions to allow the housing supply to expand - suggested measures include: encouraging new construction or the redevelopment of existing structures by permitting appropriate floor-space ratios, building heights, and density in specific target zones; streamline processes to speed up land-use approval and permitting; improving property rights and the land administration system; and developing governance structures that ensure efficient coordination mechanisms across financing, urban planning, infrastructure development, land-use regulation, building codes, delivery and contracting approaches is critical. 2) Use public finance more strategically – calling on governments to emphasize strategic investment projects of greenfield housing with transportation links to facilitate travel to the centres of economic activity. 3) A shift in government spending away from tax and benefit incentives that favour homeownership in favour of tenure-neutral, portable and progressive housing allowances would improve redistribution and efficiency. 4) Governments could consider providing housing allowances for targeted groups, such as the youth, potentially making benefits conditional on job search responsibilities. 5) Improve monitoring and dissemination of housing data and local-level information – through government providing better information on housing prices, employment, wages, housing policies and regulations, and other indicators would help to inform policy makers. Recommend further reading relevant to this element includes: 1) Haffner, M. E. A. and K. Hulse (2019). "A Fresh Look at Contemporary Perspectives on Urban Housing Affordability." International Journal of Urban Sciences. 2) Mulliner, E., K. Smallbone and V. J. O. Maliene (2013). "An Assessment of Sustainable Housing Affordability Using a Multiple Criteria Decision Making Method." Science Direct 41 (2): 270-279. 3.7 Element 7 – Changing demographics The following key issues are highlighted for this element: 1. There is a high degree of awareness across the network of the changing demographics of those in need of social and affordable housing. Using this knowledge to develop and deliver innovative policies, assets and services now and into the future is critical. 2. Four key changing demographic issues in Australia include: (i) the population is ageing; (ii) household composition is changing; (iii) cities are key growth areas; and (iv) home ownership in Australia is declining. The 2018 SBEnrc Changing Demographics and Typologies research report highlighted four key demographic changes occurring in Australia (Kraatz, Baro et al. 2018): (i) the population is aging; (ii) household composition is changing; (iii) cities are key growth areas; and (iv) home ownership in Australia is declining. That report noted ‘the changes in demographics identified are largely due to: longer life expectancy; migration (including of Indigenous households to urban locations); and growing household diversity (e.g. one person and multigenerational households)’. These general trends are altering the composition of households, and affecting lifestyles and the demand for appropriate Sustainable Built Environment National Research Centre (SBEnrc) Page 23 of 64
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